UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 6-K

Pursuant to Rule 13a-16 or 15d-16 under
the Securities Exchange Act of 1934

For the month of January, 2011

COMMISSION FILE NUMBER: 1-7239

KOMATSU LTD.

Translation of registrant’s name into English

Address of principal executive office

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F þ           Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o           No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-____________

 

 

INFORMATION TO BE INCLUDED IN REPORT

1.

Two company announcements made on January 27, 2011.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		Komatsu Ltd. Corporate Communications Dept. Tel: +81-(0)3-5561-2616 Date: January 27, 2011 URL: http://www.komatsu.com/

Consolidated Business Results for Nine Months of the Fiscal Year Ending
March 31, 2011 (U.S. GAAP)

1. Results for Nine Months Ended December 31, 2010

(Amounts are rounded to the nearest million yen)

(1) Consolidated Financial Highlights

		Millions of yen except per share amounts
		Nine months ended				Nine months ended
		December 31, 2010				December 31, 2009				Changes
		[A]				[B]				[A-B]				[(A-B)/B]
Net sales			1,301,973				1,003,927				298,046				29.7	%
Operating income			162,747				36,097				126,650				350.9	%
Income before income taxes and equity in earnings of affiliated companies			158,903				34,688				124,215				358.1	%
Net income attributable to Komatsu Ltd.			100,622				18,355				82,267				448.2	%
Net income attributable to Komatsu Ltd. per share (Yen)
Basic			103.97				18.96
Diluted			103.91				18.95

(2) Consolidated Financial Position

		Millions of yen except per share amounts
		As of December 31, 2010				As of March 31, 2010
Total assets			1,999,946				1,959,055
Total equity			899,012				876,799
Komatsu Ltd. shareholders’ equity			853,526				833,975
Komatsu Ltd. shareholders’ equity ratio			42.7	%			42.6	%
Komatsu Ltd. shareholders’ equity per share (Yen)			881.94				861.51

2. Dividends

(For the fiscal years ended March 31, 2010 and ending March 31, 2011)

		Yen
		The entire FY ending March 31, 2011								The entire FY ended
		Results				Projection				March 31, 2010
First quarter period
Second quarter period			18.00				—				8.00
Third quarter period
Year-end			—				18.00				8.00
Total							36.00				16.00

3. Projections for the Fiscal Year Ending March 31, 2011

(From April 1, 2010 to March 31, 2011)

		Millions of yen except per share amounts
		The full fiscal year
						Changes
Net sales			1,815,000				26.8	%
Operating income			230,000				243.1	%
Income before income taxes and equity in earnings of affiliated companies			225,000				246.3	%
Net income attributable to Komatsu Ltd.			140,000				317.2	%
Net income attributable to Komatsu Ltd. per share (basic) (Yen)			144.66

4. Others

(1)		Changes in important subsidiaries during three months ended December 31, 2010: None
(2)		Use of simplified accounting procedures and adaptation of specific accounting procedures for the preparation of consolidated quarterly financial statements: None
(3)		Changes in accounting standards, procedures and presentations for the preparation of consolidated quarterly financial statements

	1)		Changes resulting from revisions in accounting standards, etc.: None
	2)		Change in other matters except for 1) above: None

(4)

Number of common shares outstanding

1)

The numbers of common shares issued (including treasury stock) were as follows:

As of December 31, 2010:		998,744,060 shares
As of March 31, 2010:		998,744,060 shares

2)

The numbers of shares of treasury were as follows:

As of December 31, 2010:		30,959,827 shares
As of March 31, 2010:		30,704,084 shares

3)

The weighted average numbers of common shares outstanding were as follows:

Nine months ended December 31, 2010:		967,788,140 shares
Nine months ended December 31, 2009:		968,000,628 shares

[Reference]

Results for Three Months Ended December 31, 2010

		Millions of yen except per share amounts
		Three months ended				Three months ended
		December 31, 2010				December 31, 2009				Changes
		[A]				[B]				[A-B]				[(A-B)/B]
Net sales			442,210				357,964				84,246				23.5	%
Operating income			58,835				16,312				42,523				260.7	%
Income before income taxes and equity in earnings of affiliated companies			58,792				16,236				42,556				262.1	%
Net income attributable to Komatsu Ltd.			36,858				10,157				26,701				262.9	%
Net income attributable to Komatsu Ltd. per share (Yen)
Basic			38.09				10.49
Diluted			38.06				10.49

[Reference]

Projections of the Company for the Fiscal Year Ending March 31, 2011

(From April 1, 2010 to March 31, 2011)

		Millions of yen except per share amounts
		The full fiscal year
						Changes
Net sales			730,000				59.5	%
Operating profit			78,000				—	%
Ordinary profit			85,000				—	%
Net income			51,000				—	%
Net income per share (Yen)			52.67

Appendix

Management Performance and Financial Conditions
(1) Outline of Operations and Business Results			P.5
(2) Financial Conditions			P.8
(3) Projections for the Fiscal Year Ending March 31, 2011			P.9
Financial Statements
(1) Condensed Consolidated Balance Sheets			P.11
(2) Condensed Consolidated Statements of Income			P.13
(3) Consolidated Statements of Equity			P.15
(4) Consolidated Statements of Cash Flows			P.16
(5) Note to the Going Concern Assumption			P.17
(6) Business Segment Information			P.17
(7) Note in Case of Notable Change(s) in the Amount of Shareholders’ Equity			P.18

Management Performance and Financial Conditions

(1) Outline of Operations and Business Results

Komatsu Ltd. (“Company”) and its consolidated subsidiaries (together “Komatsu”) embarked on the new three-year management plan, “Global Teamwork for Tomorrow” in April last year. Under this new mid-range management plan, Komatsu began concerting efforts on activities of importance, including 1) promotion of ICT applications to products and parts; 2) development of products for improved environmental friendliness and safety; 3) expansion of sales and service operations in Strategic Markets, which include China, Southeast Asia, and Latin America; and 4) promotion of continuous Kaizen (improvement) by strengthening workplace capability.

During the nine months from April 1 to December 31, 2010 of the fiscal year ending March 31, 2011, the first year of the ongoing mid-range management plan, demand for construction and mining equipment increased in all regions of the world from the corresponding period a year ago, reflecting strong demand in Strategic Markets such as China, Southeast Asia and Latin America, as well as recovery of demand in the Traditional Markets of Japan, North America and Europe. Demand for industrial machinery began to recover, supported by an increase in the production volume of automobiles in Strategic Markets and the growth of the solar cell industry in Asia, centering on China.

By capitalizing on growth in demand, Komatsu expanded consolidated net sales by 29.7% from the corresponding nine-month period a year ago, to JPY1,301.9 billion (USD15,878 million, at USD1=JPY82). While the Japanese currency appreciated sharply against the U.S. dollar, Euro and Renminbi from the corresponding period a year ago, Komatsu made sizable gains in profits for the nine months by continuing to realize selling prices and decrease production costs in addition to expanding the volume of sales. Specifically, operating income reached JPY162.7 billion (USD1,985 million), up 350.9%, and operating income ratio advanced to 12.5%, an improvement of 8.9 percentage points. Income before income taxes and equity in earnings of affiliated companies increased by 358.1% to JPY158.9 billion (USD1,938 million). Net income attributable to Komatsu Ltd. totaled JPY100.6 billion (USD1,227 million), up 448.2%.

		Millions of yen
		Nine months ended				Nine months ended
		December 31, 2010				December 31, 2009
		USD1=JPY86				USD1=JPY93
		EUR1=JPY112				EUR1=JPY133
		RMB1=JPY12.8				RMB1=JPY13.7				Changes
		[A]				[B]				[(A-B)/B]
Net sales			1,301,973				1,003,927				29.7	%
Operating income			162,747				36,097				350.9	%
Income before income taxes and equity in earnings of affiliated companies			158,903				34,688				358.1	%
Net income attributable to Komatsu Ltd.			100,622				18,355				448.2	%

Business results by operation are described below.

Construction, Mining and Utility Equipment

While Komatsu continued to work on expanding production capacity as well as sales and product support capabilities in Strategic Markets by anticipating their medium to long-range market growth, demand remained strong especially in China, Southeast Asia and Latin America and recovered in the Traditional Markets of Japan, North America and Europe in the nine months under review. Against the backdrop of demand recovery worldwide, consolidated net sales of construction, mining and utility equipment advanced by 29.4% from the corresponding nine months a year ago, to JPY1,146.9 billion (USD13,987 million).

To further expand sales of hybrid hydraulic excavators which offer improved fuel consumption and CO₂ emissions volume, Komatsu decided on a worldwide market launch and tooled up production. Komatsu introduced new HB205 and HB215LC hybrid hydraulic excavators after changing the forerunner model on the Japanese market in December 2010. Komatsu is planning to launch their sales in China, Southeast Asia, Latin and North America, Europe and other regions.

[Sales of Construction, Mining and Utility Equipment by Region]

		Millions of yen
		Nine months ended				Nine months ended
		December 31, 2010				December 31, 2009				Changes
		[A]				[B]				[A-B]				[(A-B)/B]
Japan			187,029				167,165				19,864				11.9	%
Americas			281,725				219,547				62,178				28.3	%
Europe & CIS			112,849				89,015				23,834				26.8	%
China			220,049				160,066				59,983				37.5	%
Asia* & Oceania			271,123				190,871				80,252				42.0	%
Middle East & Africa			74,146				59,823				14,323				23.9	%
Total			1,146,921				886,487				260,434				29.4	%

Japan

While public works began to decline around September 2010 as positive effects of the Japanese government’s economic stimulus measure faded away, private-sector capital investment remained strong. Against this backdrop, demand for construction equipment headed for recovery centering on the rental equipment industry, and Komatsu’s nine-month sales in Japan increased from the corresponding nine months a year ago.

Sales of HB205 and HB215LC hybrid hydraulic excavators made a good start in Japan, as Komatsu implemented a nationwide sales campaign in tune with their market introduction.

Americas

In North America, while the U.S. housing starts remained sluggish, overall demand for equipment headed for recovery, reflecting strong demand in the rental equipment and mining industries. In this market environment, Komatsu concerted efforts to improve its distributors’ financial strength by continuing to promote the zero inventory of distributors campaign. In Latin America, demand in the mining industry expanded substantially in Chile, and demand remained brisk in mining, civil engineering, agricultural and forestry sectors in Brazil, the largest Latin American market. In addition to these market recoveries, Komatsu strengthened its sales and product support activities. As a result, nine-month sales in the Americas increased from the corresponding period a year ago.

Europe & CIS

Demand stopped falling in Europe in the current fiscal year under review, and demand has recovered in western Europe, centering on Germany and the United Kingdom. In addition to this market recovery, Komatsu worked to strengthen its product support capability and expand sales of parts by teaming up with its distributors. Sales for the nine months in Europe improved from the corresponding period a year ago. In CIS, demand for mining equipment advanced particularly in use in the development of natural resources such as coal and gold. Sales for the nine months in CIS also increased from the corresponding period a year ago.

To seize on the medium and long-range demand for mining equipment, Komatsu worked to strengthen its production and product support capabilities by commencing production at Komatsu Manufacturing Rus, LLC. last year and preparing to open the Kuzbass Support Center in Siberia.

China

Demand for construction and mining equipment continued to advance in China, where the Chinese government led urbanization and infrastructure development projects. Sales for the nine months increased from the corresponding period a year ago.

By anticipating the future expansion of demand for mining equipment, Komatsu has established Komatsu China Mining Limited to engage in sales and product support exclusively for large-scale mining companies, and embarked on the development and production of buckets and attachments at Komatsu Construction Attachment Changzhou. In addition, Komatsu continued to ensure the successful plant relocation of Komatsu (Changzhou) Construction Machinery Corp., the opening of the KC Techno Center, and the development of service engineers for its distributors through the special training course at Shandong Jiaotong University, which has been offered continuously since 2004. All in all, Komatsu concerted efforts to reinforce its production, sales and product support capabilities.

Asia & Oceania

In Indonesia, the largest market of Southeast Asia, demand for mining equipment continued to expand, while demand remained strong in the civil engineering, agriculture and forestry sectors. Demand was also strong in India, Thailand and Malaysia. In Australia, demand for mining equipment continued to grow. Under such market conditions, sales accelerated in Asia, and therefore, sales in Asia & Oceania for the nine months advanced from the corresponding period a year ago. In Southeast Asia, Komatsu concerted efforts to introduce KOMTRAX-installed standard equipment to more regions. In Australia, Komatsu continued to reinforce sales and product support capabilities, including the reorganization of Komatsu Australia Pty Ltd in August 2010 with an eye to further strengthening its capabilities as a distributor.

Middle East & Africa

In addition to economies beginning to recover in both regions, commodity prices increased, albeit moderately, and therefore, demand was firm, particularly in the mining sector. As a result, sales for the nine months improved from the corresponding period a year ago. Komatsu is expecting market expansion into the future as accompanied by the development of new mines and the recovery of infrastructure development. In Africa, Komatsu worked to reinforce its product support capability by developing higher skills for service engineers of its distributors at a new training center jointly established with a distributor in Kenya in April 2010. This followed the opening of a training center in Senegal in the previous fiscal year.

Industrial Machinery and Others

In the industrial machinery and others business, Komatsu boosted sales of wire saws for use in slicing silicon ingots as capital investment remained brisk in Asia, centering on China, for the solar cell market. As a result, sales for the nine months advanced by 32.0% from the corresponding period a year ago, to JPY155.0 billion (USD1,891 million). In Strategic Markets, such as China, India and Brazil, capital investment by the automobile manufacturing industry upturned for recovery and Komatsu received an increased number of new orders for large presses and other machinery.

To further enhance the competitive strength of its industrial machinery business under such market conditions, Komatsu reorganized the press business in April 2010 by concentrating all operations of the press business in Komatsu Industries Corporation, involving the development, sales and service functions of small, medium-sized and large presses. In April 2011, Komatsu NTC Ltd. and Komatsu Machinery Corporation, that are both manufacturing machine tools for the automobile manufacturing industry as well as semiconductor manufacturing equipment, are going to merge, and Komatsu is going to absorb Komatsu Engineering Corp. with its leading-edge expertise in system engineering. Komatsu NTC Ltd. is building a new plant designed to expand its production capacity of wire saws and other machinery.

(2) Financial Conditions

As of December 31, 2010, total assets increased by JPY40.8 billion from the previous fiscal year-end, to JPY1,999.9 billion (USD24,390 million), mainly due to increased inventories for high-demand seasons. Interest-bearing debt decreased by JPY45.3 billion from the previous fiscal year-end, to JPY541.0 billion (USD6,598 million). Komatsu Ltd. shareholders’ equity increased by JPY19.5 billion from the previous fiscal year-end, to JPY853.5 billion (USD10,409 million). As a result, Komatsu Ltd. shareholders’ equity ratio increased by 0.1 point from the previous fiscal year-end, to 42.7%. Net debt-to-equity ratio* was 0.53 compared to 0.60 as of the previous fiscal year-end.

For the nine months under review, net cash provided by operating activities increased by JPY17.6 billion from the corresponding period a year ago, to JPY132.9 billion yen (USD1,621 million), largely due to an increase in net income. Net cash used in investing activities increased by JPY14.3 billion from the corresponding period a year ago, to JPY64.9 billion (USD792 million). Net cash used in financing activities declined by JPY0.9 billion from the corresponding period a year ago, to JPY59.6 billion (USD727 million), mainly due to decreased repayments on short-term debt. As a result, cash and cash equivalents, as of December 31, 2010, totaled JPY84.3 billion (USD1,029 million), an increase of JPY1.9 billion from the previous fiscal year-end.

(3) Projections for the Fiscal Year Ending March 31, 2011

(From April 1, 2010 to March 31, 2011)

In the construction, mining and utility equipment business, Komatsu continues to meet strong demand around the world. In particular, demand is growing more than we anticipated in China, the Americas and Japan. By anticipating an increase in the volume of sales based on this growth of demand, we are projecting that both sales and profits will outperform our projections disclosed in October 2010.

As preconditions for our current projections, we are assuming the foreign exchange rates as follows: USD1 = JPY82, EUR1 = JPY114 and RMB1 = JPY12.3 in the fourth quarter of the current fiscal year ending March 31, 2011; and USD1 = JPY85, EUR1 = JPY113 and RMB1 = JPY12.7 in the full fiscal year.

Consolidated Business Results

		Millions of yen
		Earlier				Current												Results for
		projection				projection				Changes								FY ended
		[A]				[B]				[B-A]				[(B-A)/A]				March 31, 2010
Net sales			1,760,000				1,815,000				55,000				3.1	%			1,431,564
Operating income			200,000				230,000				30,000				15.0	%			67,035
Income before income taxes and equity in earnings of affiliated companies			192,000				225,000				33,000				17.2	%			64,979
Net income attributable to Komatsu Ltd.			120,000				140,000				20,000				16.7	%			33,559

[Reference]

Projections of the Company for the Fiscal Year Ending March 31, 2011

Similar to the revised projections for consolidated business results above, the Company continues to meet strong demand around the world in the construction, mining and utility equipment business. In particular, demand is growing more than we anticipated in China, the Americas and Japan. By anticipating an increase in the volume of sales based on this growth in demand, we are projecting that both sales and profits will outperform our projections disclosed in October 2010.

Non-consolidated Business Results

		Millions of yen
		Earlier				Current												Results for
		projection				projection				Changes								FY ended
		[A]				[B]				[B-A]				[(B-A)/A]				March 31, 2010
Net sales			690,000				730,000				40,000				5.8	%			457,676
Operating profit			67,000				78,000				11,000				16.4	%			(26,829	)
Ordinary profit			74,000				85,000				11,000				14.9	%			(1,120	)
Net income			42,000				51,000				9,000				21.4	%			2,378

Cautionary Statement

The announcement set forth herein contains forward-looking statements which reflect management’s current views with respect to certain future events, including expected financial position, operating results, and business strategies. These statements can be identified by the use of terms such as “will,” “believes,” “should,” “projects” and similar terms and expressions that identify future events or expectations. Actual results may differ materially from those projected, and the events and results of such forward-looking assumptions cannot be assured.

Factors that may cause actual results to differ materially from those predicted by such forward-looking statements include, but are not limited to, unanticipated changes in demand for Komatsu’s principal products, owing to changes in the economic conditions in Komatsu’s principal markets; changes in exchange rates or the impact of increased competition; unanticipated cost or delays encountered in achieving Komatsu’s objectives with respect to globalized product sourcing and new Information Technology tools; uncertainties as to the results of Komatsu’s research and development efforts and its ability to access and protect certain intellectual property rights; and, the impact of regulatory changes and accounting principles and practices.

Financial Statements

(1) Condensed Consolidated Balance Sheets

Assets

		Millions of yen
		As of December 31, 2010								As of March 31, 2010
						Ratio (%)								Ratio (%)
Current assets
Cash and cash equivalents		¥	84,353							¥	82,429
Time deposits			606								1,132
Trade notes and accounts receivable			442,298								447,693
Inventories			458,105								396,416
Deferred income taxes and other current assets			127,099								112,451
Total current assets			1,112,461				55.6				1,040,121				53.1
Long-term trade receivables			157,681				7.9				150,972				7.7
Investments
Investments in and advances to affiliated companies			24,689								24,002
Investment securities			57,579								60,467
Other			2,979								2,399
Total investments			85,247				4.3				86,868				4.4
Property, plant and equipment
- Less accumulated depreciation			510,619				25.5				525,100				26.8
Goodwill			28,934				1.4				29,570				1.5
Other intangible assets			56,931				2.9				61,729				3.2
Deferred income taxes and other assets			48,073				2.4				64,695				3.3
Total		¥	1,999,946				100.0			¥	1,959,055				100.0

Liabilities and Equity

		Millions of yen
		As of December 31, 2010								As of March 31, 2010
						Ratio (%)								Ratio (%)
Current liabilities
Short-term debt		¥	111,555							¥	123,438
Current maturities of long-term debt			99,599								105,956
Trade notes, bills and accounts payable			279,014								207,024
Income taxes payable			20,388								22,004
Deferred income taxes and other current liabilities			183,801								183,324
Total current liabilities			694,357				34.7				641,746				32.7
Long-term liabilities
Long-term debt			329,857								356,985
Liability for pension and retirement benefits			41,653								46,354
Deferred income taxes and other liabilities			35,067								37,171
Total long-term liabilities			406,577				20.3				440,510				22.5
Total liabilities			1,100,934				55.0				1,082,256				55.2
Komatsu Ltd. shareholders’ equity
Common stock			67,870								67,870
Capital surplus			140,561								140,421
Retained earnings:
Appropriated for legal reserve			33,243								31,983
Unappropriated			798,274								724,090
Accumulated other comprehensive income (loss)			(151,154	)							(95,634	)
Treasury stock			(35,268	)							(34,755	)
Total Komatsu Ltd. shareholders’ equity			853,526				42.7				833,975				42.6
Noncontrolling interests			45,486				2.3				42,824				2.2
Total equity			899,012				45.0				876,799				44.8
Total		¥	1,999,946				100.0			¥	1,959,055				100.0

(2) Condensed Consolidated Statements of Income

Nine months ended December 31, 2010 and 2009

		Millions of yen except per share amounts
		Nine months ended								Nine months ended
		December 31, 2010								December 31, 2009
						Ratio								Ratio
						(%)								(%)
Net sales		¥	1,301,973				100.0			¥	1,003,927				100.0
Cost of sales			946,407				72.7				780,516				77.7
Selling, general and administrative expenses			190,488				14.6				181,204				18.0
Other operating income (expenses), net			(2,331	)			(0.2	)			(6,110	)			(0.6	)
Operating income			162,747				12.5				36,097				3.6
Other income (expenses), net			(3,844	)							(1,409	)
Interest and dividend income			3,012				0.2				5,215				0.5
Interest expense			(4,651	)			(0.4	)			(7,276	)			(0.7	)
Other, net			(2,205	)			(0.2	)			652				0.1
Income before income taxes and equity in earnings of affiliated companies			158,903				12.2				34,688				3.5
Income taxes			55,650				4.3				11,839				1.2
Income before equity in earnings of affiliated companies			103,253				7.9				22,849				2.3
Equity in earnings of affiliated companies			2,399				0.2				556				0.1
Net income			105,652				8.1				23,405				2.3
Less net income attributable to noncontrolling interests			(5,030	)			(0.4	)			(5,050	)			(0.5	)
Net income attributable to Komatsu Ltd.		¥	100,622				7.7			¥	18,355				1.8
Net income attributable to Komatsu Ltd. per share (Yen)
Basic			103.97								18.96
Diluted			103.91								18.95

Three months ended December 31, 2010 and 2009

		Millions of yen except per share amounts
		Three months ended								Three months ended
		December 31, 2010								December 31, 2009
						Ratio								Ratio
						(%)								(%)
Net sales		¥	442,210				100.0			¥	357,964				100.0
Cost of sales			316,530				71.6				275,434				76.9
Selling, general and administrative expenses			65,738				14.9				61,721				17.2
Other operating income (expenses), net			(1,107	)			(0.3	)			(4,497	)			(1.3	)
Operating income			58,835				13.3				16,312				4.6
Other income (expenses), net			(43	)							(76	)
Interest and dividend income			683				0.2				1,250				0.3
Interest expense			(1,362	)			(0.3	)			(2,151	)			(0.6	)
Other, net			636				0.1				825				0.2
Income before income taxes and equity in earnings of affiliated companies			58,792				13.3				16,236				4.5
Income taxes			22,143				5.0				5,196				1.5
Income before equity in earnings of affiliated companies			36,649				8.3				11,040				3.1
Equity in earnings of affiliated companies			1,201				0.3				515				0.1
Net income			37,850				8.6				11,555				3.2
Less net income attributable to noncontrolling interests			(992	)			(0.2	)			(1,398	)			(0.4	)
Net income attributable to Komatsu Ltd.		¥	36,858				8.3			¥	10,157				2.8
Net income attributable to Komatsu Ltd. per share (Yen)
Basic			38.09								10.49
Diluted			38.06								10.49

(3) Consolidated Statements of Equity

Nine months ended December 31, 2010

		Millions of yen
										Retained earnings								Accumulated								Total
										Appropriated								other								Komatsu Ltd.
		Common				Capital				for legal								comprehensive				Treasury				shareholders’				Noncontrolling
		stock				surplus				reserve				Unappropriated				income (loss)				stock				equity				interests				Total equity
Balance at March 31, 2010		¥	67,870			¥	140,421			¥	31,983			¥	724,090			¥	(95,634	)		¥	(34,755	)		¥	833,975			¥	42,824			¥	876,799
Cash dividends															(25,178	)											(25,178	)			(975	)			(26,153	)
Transfer to retained earnings appropriated for legal reserve											1,260				(1,260	)											—								—
Other changes																											—				1,910				1,910
Comprehensive income (loss)
Net income															100,622												100,622				5,030				105,652
Other comprehensive income (loss), for the period, net of tax
Foreign currency translation adjustments																			(56,935	)							(56,935	)			(3,382	)			(60,317	)
Net unrealized holding gains (losses) on securities available for sale																			274								274				—				274
Pension liability adjustments																			418								418				—				418
Net unrealized holding gains (losses) on derivative instruments																			723								723				79				802
Comprehensive income (loss)																											45,102				1,727				46,829
Issuance and exercise of stock acquisition rights							133																				133								133
Purchase of treasury stock																							(572	)			(572	)							(572	)
Sales of treasury stock							7																59				66								66
Balance at December 31, 2010		¥	67,870			¥	140,561			¥	33,243			¥	798,274			¥	(151,154	)		¥	(35,268	)		¥	853,526			¥	45,486			¥	899,012

Nine months ended December 31, 2009

		Millions of yen
										Retained earnings								Accumulated								Total
										Appropriated								other								Komatsu Ltd.
		Common				Capital				for legal								comprehensive				Treasury				shareholders’				Noncontrolling
		stock				surplus				reserve				Unappropriated				income (loss)				stock				equity				interests				Total equity
Balance at March 31, 2009		¥	67,870			¥	140,092			¥	28,472			¥	719,222			¥	(105,744	)		¥	(34,971	)		¥	814,941			¥	33,393			¥	848,334
Cash dividends															(25,180	)											(25,180	)			(1,735	)			(26,915	)
Transfer to retained earnings appropriated for legal reserve											2,688				(2,688	)											—								—
Other changes																											—				1,514				1,514
Comprehensive income (loss)
Net income															18,355												18,355				5,050				23,405
Other comprehensive income (loss), for the period, net of tax
Foreign currency translation adjustments																			(2,018	)							(2,018	)			1,431				(587	)
Net unrealized holding gains (losses) on securities available for sale																			1,244								1,244				—				1,244
Pension liability adjustments																			2,326								2,326				1				2,327
Net unrealized holding gains (losses) on derivative instruments																			640								640				678				1,318
Comprehensive income (loss)																											20,547				7,160				27,707
Issuance and exercise of stock acquisition rights							413																				413								413
Purchase of treasury stock																							(22	)			(22	)							(22	)
Sales of treasury stock							(84	)															256				172								172
Balance at December 31, 2009		¥	67,870			¥	140,421			¥	31,160			¥	709,709			¥	(103,552	)		¥	(34,737	)		¥	810,871			¥	40,332			¥	851,203

(4) Consolidated Statements of Cash Flows

		Millions of yen
		Nine months ended				Nine months ended
		December 31, 2010				December 31, 2009
Operating activities
Net income		¥	105,652			¥	23,405
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization			66,128				67,752
Deferred income taxes			23,907				(12,330	)
Net loss (gain) from sale of investment securities and subsidiaries			(72	)			(807	)
Net loss (gain) on sale of property			(1,946	)			(510	)
Loss on disposal of fixed assets			948				1,313
Pension and retirement benefits, net			(4,142	)			(1,884	)
Changes in assets and liabilities:
Decrease (increase) in trade receivables			(48,750	)			(28,410	)
Decrease (increase) in inventories			(94,511	)			86,846
Increase (decrease) in trade payables			78,182				(30,792	)
Increase (decrease) in income taxes payable			(126	)			(2,721	)
Other, net			7,659				13,457
Net cash provided by (used in) operating activities			132,929				115,319
Investing activities
Capital expenditures			(74,383	)			(69,103	)
Proceeds from sale of property			6,317				11,077
Proceeds from sale of available for sale investment securities			1,843				720
Purchases of available for sale investment securities			(493	)			(3,465	)
Proceeds from sale of subsidiaries and equity investees, net of cash disposed			—				661
Acquisition of subsidiaries and equity investees, net of cash acquired			758				638
Collection of loan receivables			1,556				10,512
Disbursement of loan receivables			(918	)			(1,116	)
Decrease (increase) in time deposits			407				(521	)
Net cash provided by (used in) investing activities			(64,913	)			(50,597	)
Financing activities
Proceeds from long-term debt			50,162				104,021
Repayments on long-term debt			(50,392	)			(41,069	)
Increase (decrease) in short-term debt, net			(10,339	)			(70,869	)
Repayments of capital lease obligations			(24,034	)			(25,876	)
Sale (purchase) of treasury stock, net			30				150
Dividends paid			(25,178	)			(25,180	)
Other, net			121				(1,752	)
Net cash provided by (used in) financing activities			(59,630	)			(60,575	)
Effect of exchange rate change on cash and cash equivalents			(6,462	)			(1,219	)
Net increase (decrease) in cash and cash equivalents			1,924				2,928
Cash and cash equivalents, beginning of year			82,429				90,563
Cash and cash equivalents, end of period		¥	84,353			¥	93,491

(5) Note to the Going Concern Assumption

None

(6) Business Segment Information

1) Operating Segments

Nine months ended December 31, 2010 and 2009

(For the nine months ended December 31, 2010)

		Millions of yen
		Construction,				Industrial
		Mining and				Machinery and								Corporate &
		Utility Equipment				Others				Subtotal				elimination				Total
Net sales:
Customers			1,146,921				155,052				1,301,973				—				1,301,973
Intersegment			1,614				7,740				9,354				(9,354	)			—
Total			1,148,535				162,792				1,311,327				(9,354	)			1,301,973
Segment profit			156,379				13,403				169,782				(4,704	)			165,078

(For the nine months ended December 31, 2009)

		Millions of yen
		Construction,				Industrial
		Mining and				Machinery and								Corporate &
		Utility Equipment				Others				Subtotal				elimination				Total
Net sales:
Customers			886,487				117,440				1,003,927				—				1,003,927
Intersegment			2,040				11,276				13,316				(13,316	)			—
Total			888,527				128,716				1,017,243				(13,316	)			1,003,927
Segment profit			44,131				2,273				46,404				(4,197	)			42,207